This is a story about an American family and their fight to save their home. It is a story about the lies, victimization, and callousness that this family has had to endure at the hands of their bank. It is a story about Regina Grasberger and Wells Fargo.
About three years ago, Regina’s husband, Frederic, lost his job. He was denied unemployment, and up until the unexpected loss of income, the Grasberger family had a near flawless credit rating. Their hope was that Frederic would be able to find new full-time work relatively easily, but three years later, that hope remains unrealized. Both Regina and her husband are working multiple part-time jobs in an effort to make ends meet. Currently, they are barely getting by financially. In terms of their home, Regina and Frederic decided that the only constructive option available to them is to apply for a loan modification.
The Grasberger’s housing woes began a number of years earlier. It has come to light that the origination of their mortgage in 2005 is littered with fraudulent manipulation, something which Regina has iron-clad proof of. The evidence came about as a result of an audit of their mortgage conducted by NACA, and Regina’s reviewing of her loan origination documents. Among the glaring irregularities that have been uncovered is the fact that on her loan application, the mortgage company at the time, Arrow Mortgage, claimed that the family had $2.5 million in liquid assets, when in reality they had $26,000 before they started using funds from their 401K to make their mortgage payments. Arrow Mortgage altered all the financial data on the family’s loan application, and Wells Fargo didn’t bother to confirm the accuracy of the information. The Grasberger’s only learned of this illegal activity a few days ago.
All the Grasberger’s are trying to achieve today is to receive an interest rate reduction on their mortgage. What they are getting however is nothing but lies and excuses from Wells Fargo.
- She was advised by a Wells Fargo representative to stop making her payments because she would not be considered for a loan modification unless she was behind on her mortgage. This in itself is incorrect. Note: A HAMP loan modification can be applied for even if a homeowner’s payments are completely up to date.
- Regina was led to believe by the bank representative that she would qualify for a HAMP modification, only to be told afterwards that the investor associated with her mortgage would not entertain it.
- In addition, Wells Fargo then also informed her that she would not qualify for their private loan modification program either.
- Regina has now been trying for two and a half years to obtain a loan modification with Wells Fargo. She has been rejected at least 3 times, and this after being told numerous times that the HAMP option would help her and that Wells Fargo themselves have numerous private modification programs that would benefit her.
- She received a letter of rejection from Wells Fargo informing her that she did not qualify for a temporary rate reduction because she had not stopped making her loan payments when they suggested she should. 3 days after that, she received further written communication that officially confirmed that her application was rejected, and that she should contact HUD or HOPE for further assistance.
- After repeated failed attempts to contact the bank representative who was supposedly working on her case, she was told by Wells Fargo that her file was closed and that she had no access to it. After insisting numerous times on speaking with her representative, Regina eventually made contact, only to be told that her mortgage is controlled by a private investor (mortgage backed-securities) who does not want to offer her a HAMP or propriety loan modification. This investor refuses to entertain the possibility of principle capitalization on her mortgage even though her figures are minimal compared to the National Average (a mere 2 months behind at $2,087 per month).
Her personal point of contact at the bank refuses to speak with her. Repeated attempts to have a conversation with a Wells Fargo manager have been unsuccessful. None of these individuals are ever available, no matter when or how often she calls. Wells Fargo has denied ever receiving her paperwork. They failed to confirm the accuracy of her loan origination documents. They have on numerous occasions indicated that she would be receiving assistance, but that assistance was never offered. To add insult to injury, in a move which can only be viewed as a blatant attempt to cover their backsides in the event of any subsequent legal proceedings, a bankruptcy specialist at Wells Fargo had the nerve to send her a letter a few days ago claiming that they’ve been repeatedly trying to make contact with her in an attempt to help her, but that she was never available to answer their calls! It is nothing short of outright hypocrisy and dishonesty.
Beyond this point, all her attempts to call the bank connected her to a voicemail service that instructed her to call back in 2-3 days. Although she was told that she is not qualified for a loan, on 1/25/2012, she received a letter with a foreclosure date on it. This is the hardest thing to understand? Where is the logic here? She was told that her application was denied because she was not 3 months behind on her mortgage (which she was, based on the advice she received from Wells Fargo). Literally one day after Regina made a mortgage payment, bringing her loan to 2 months behind, she received the foreclosure notice. Years of trying to communicate with Wells Fargo, and all she got was dismissal. One day after falling short of one of their ridiculous and incorrect loan modification guidelines, she gets a foreclosure notice!
After many unsuccessful requests from Regina. Wells Fargo has finally shared the identity of the private investor with her. It is known as Mortgage Backed Securities, and this could be at least ONE of the reasons why she has not obtained a loan modification. Mortgage backed securities companies have bought “credit default swaps” against mortgages, including sub-prime mortgages. These credit default swaps operate like an insurance, whereby the mortgage backed security would be at least 100% refunded by the “insurance” if foreclose occurs. So, they essentially have no motivation to provide a loan modification and take a small loss, but prefer to recover the entire amount given in prior years. Here is more information on mortgage backed securities.
Why did Wells Fargo not have the common-sense to check upfront whether or not the mysterious private investor had any inclination of entertaining her loan modification application? Why did they never perform due diligence in checking her loan origination documentation? Why has the bank repeatedly dismissed her attempts to receive help or counsel from anyone? Why are they now blatantly lying and in effect accusing her of causing the rejection of her own application because of alleged unavailability and lack of interest on her part? Regina and her family are distraught, they are angry, and they are scared. Their home represents their security, their safety, their future.
Based on the conduct of those at Wells Fargo, they for their part have clearly indicated that they simply don’t give a damn. This is the nightmare of a story that Regina and her family have approached Mycaal.com with. And you can bet your bottom dollar that their story is by no means unique. It is a story that continues to unfold across the United States by the millions.
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About Carla Ghosn
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CEO and Founder of Caal (mycaal.com) keen on helping American homeowners save their home. If you need help with your loan modification, visit www.mycaal.com to get help on pre-qualifying your loan for approval, as well as preparing and printing your loan modification package online. |
I have also had this very same scenario. I was reading Regina’s story and I thought it was mine!! I have written to the Office of the Comtroller of the Currency (OCC), along with the Consumer financial Protection Bureau (CFPB). The “executive mortage specialists”, who are actually “written correspondence division” personnel who have been given a “new” title are defrauding the federal government and the homeowner. The only way to stop their FRAUD is to file a lawsuit. In a lawsuit, you must attach all of your documentation as proof (also known as discovery), and demand a trial by jury. Once this is done, ORIGINAL documents (not copies) can be suphenoned. This is the only way you can stop them and prove the paper work is a fraud. They will continue to lie and “cloud” any subject, not answering the customer complaints truthfully. This is a violation of the consumer financial protection laws, and I am sure it is all considered RICO VIOLATIONS. I believe this is also Home Insurance Fraud. If the institution being questioned is only servicing your loan, I am sure they do not have any rights for reimbursement on any foreclosure claim payment made against your homeowners insurance. This is coverage for THEM , and paid for by you. This is insurance fraud!!!
This is exactly what my husband and I are going through. Wells Fargo actually told us today that they didnt want to submit new paperwork because it will “waste their employees time”. The HAMP acceptance guidelines and paperwork have changed and account for regular bills so of course I want them to submit new paperwork. Not only that but the rep. for Wells Fargo said that they are considering my husbands overtime despite the fact that they are not supposed to and the fact that overtime is not a guarantee in any job. She even told my husband to just file for bankruptcy……..how is that a help? She didn’t submit the papers the first time around but choose to have the inside reviewers look at it and they declined it and sent us a rejection letter stating it was due to our poor credit rating. I think I just want to get it over with and go away for good.
After reading this story, it sounded identical to our current situation. No return calls and even though Wells Fargo states I rejected one offer for a loan modification and another was denied, I never received any documentation indicating this. Trying to get a hold of anyone is ridiculous. I leave messages daily for the Home Preservation Specialist daily and he is completely worthless. In two months, I have talked to him once and not for lack of trying on my end. It is ridiculous that they can change their outgoing messages daily, but cannot return calls. After getting several months behind on mortgage (which was done so I could get assistance from Wells Fargo, as I was told that because our payments were not delinquent, then it was likely that I would not be assisted). Further, after three months, I received a Foreclosure documents..Now I am not sure what to do. My husband lost his job three years ago as well and has not found employment…At my wits end in California!
Sounds like me story. I am currently with Citimortgage but I believe my loan is with a private investor and I have been informed that private investors will not give loan modifications. I have also made a complaint with the consumer financial protection bureau, wrote the senators and hopefully one of them will be able to help.
Wow…this is so similar to my story. Four years of trying to get answers and find a way to keep our home. So sad to read that others are in this same boat. Our private investor (Well’s Fargo) loan is serviced by Citibank such a nightmare. I hope we can get some help and answers soon. Citimortgage has closed my file so 6 times claiming documents were missing or out of date. Awful!
Danielle Simi Valley, Ca
Citimortgage just told me that if I have a private investor which I do the changes are very slim for a motification. I guess private investors have their own rules they follow. This is so frustrating. There has to be something we can be done so the private investors follow the same rules and regulations.
I too have a Wells Fargo Mortgage backed Securities Investor. But unlike the lady above, I did obtained
a Modification. I did it all myself.
But first: I had to stop making payments. Within 3 month I had all the paperwork ready and in 2 more months I began the trial period.
Only to have it cancelled by them for some unknown reasons. I persisted on my request of this mod and finally got it in January 2011.
BUT… and this is a big BUT… it is only a temporary mod. I complained and complained and was told that this SOBs only do temporary ones if at all.
I do continue to press on, and will until they give in. I am cautions though because I have a 2% 4 year mod then on the 5th year it goes to 4.5 and on the 6th to 6.5 and will stay that way till the end.
I still want a permanent one though, who knows if I don’t try I won’t get it.